Severstal reports 2009 earnings

OAO Severstal, one of the world’s leading steel and mining companies, with key assets in Russia, the US and Europe has posted today results for 12 months ended 31 December 2009.

Revenue decreased to $13,054 million from $22,393 (FY2008)million because of market conditions, particularly in the first half of 2009, which led to lower sales
volumes and average prices. EBITDA (Earnings before interest, tax, depreciation and amortization) decreased to $844 million from $5.368 billion, Severstal said in a statement.

Alexey Mordashov, Chief Executive of OAO Severstal, said: “2009 was a difficult year for the global steel industry but the decisive actions we took during the year leave the
Company well positioned for 2010. Solid economic growth in emerging markets and a gradual recovery of demand in mature markets have improved the outlook for 2010.
Furthermore, growing demand from China for raw materials has already led to higher spot prices for iron ore and coking coal in 2010, a trend we believe will be sustained during the
year”.